Taiwan Semiconductor Projects $10B In Revenue From Arizona Plant

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  • Taiwan Semiconductor Manufacturing Company Ltd TSM expects $10 billion in annual revenue from Arizona chip plants.
  • TSMC eyed a second chip plant in Arizona and tripled its initial investment to $40 billion, Reuters reports.
  • The first chip fabrication facility, or fab, will be operational by 2024. The second facility nearby will make the most advanced chips currently in production, called "3-nm," by 2026.
  • Also Read: Apple Supplier TSMC Bags Tesla As New Client For EVF Chips
  • U.S. President Joe Biden and CEOs of major TSMC customers graced the opening ceremony for the new $12 billion facility in an arid and barren part of northern Phoenix.
  • "When completed with both fabs, we will manufacture over 600,000 wafers a year, representing $10 billion in yearly revenue," said TSMC Chair Mark Liu, adding that customers using those chips would have annual sales of over $40 billion.
  • Liu said the two plants would create 13,000 high-paying tech jobs, including 4,500 under TSMC.
  • Apple Inc AAPLNvidia Corp NVDA, and Advanced Micro Devices Inc AMD, all major TSMC customers, expected the new Arizona plants to manufacture their chips.
  • At least a dozen significant cranes are still set up around the first factory, dubbed Fab 21.
  • Nearly 600 engineers hired in Arizona have been sent to Taiwan for training, TSMC founder Morris Chang said.
  • The U.S.'s landmark $52 billion federal program to boost domestic chipmaking was a powerful stimulus for TSMC.
  • IShares Semiconductor ETF SOXX closed lower by 2.1% at $368.16 on Tuesday.
  • Price Action: TSM shares closed lower by 2.5% at $79.58 on Tuesday.
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